Liberty Specialty Markets (LSM) has revealed plans to redomicile its UK insurance company to Luxembourg, while maintaining its substantial London presence.
The decision was taken in preference to setting up a separate insurance company, the carrier said.
In July, LSM announced that it would be establishing its post-Brexit European HQ in Luxembourg. Whilst many other carriers have also announced plans to set up EU hubs in the Grand Duchy in a bid to safeguard access to the EU following Brexit, most have not redomiciled existing operations, instead choosing to establish subsidiaries of their UK operations in the EU.
“Our European insurance and reinsurance businesses are highly valued at LSM. The structure that we are announcing today will set us up perfectly to take advantage of the opportunities that we have in Europe in the post-Brexit environment,” remarked LSM president and managing director Matthew Moore.
Moore explained that moving the insurance company from the UK to Luxembourg will minimise any disruption to LSM’s clients and staff by providing continuity of its insurance company paper, adding that the company has "ambitious growth plans" for Europe.
"LSM will continue to be able to offer company and Lloyd's paper throughout the UK and Europe, and one company paper for pan-EU/UK risks,” he added.
Moore also reinforced that the company remained “committed” to London. LSM said it will retain a substantial presence there via a UK branch of the Luxembourg company. No jobs will move from London to Luxembourg and LSM’s worldwide headquarters will remain in London and will become a branch of the Luxembourg-domiciled company.
Meanwhile, LSM announced that Eric Daout had been appointed as the general manager of its Luxembourg companies. Daout was formerly the managing director of CIGNA insurance Europe.
LSM’s European businesses will be led by Cologne-based Dieter Winkel, president of LSM reinsurance, and Kadidja Sinz, European head of insurance based in Paris.
LSM has already established and licensed an in-house coverholder in Luxembourg, Liberty Specialty Markets Europe S.à r.l. (LSME), which began underwriting on behalf of LSM’s UK insurance company Liberty Mutual Insurance Europe Limited (LMIE) from branches throughout Europe on 1 November. It is intended that LSME will also underwrite on behalf of Lloyd’s Brussels when it commences business.
The move of LSM’s UK insurance company to Luxembourg, the establishment of a UK branch, and the appointment of Daout are all subject to regulatory approvals.